Now it would be easier for you to transfer money between wallets. Users of portable wallets now will able to transfer money to exchange from one wallet then onto the next, with the Reserve Bank of India (RBI) discharging rules for the equivalent. The standards on interoperability of prepaid payment instruments (PPIs) don’t force PPIs, for example, wallets to allow such exchanges; rather, these rules are for “partaking PPI guarantors, who want to adopt interoperability”.
The Reserve Bank of India (RBI) said that in situations where PPIs are issued as wallets, interoperability across PPIs will be empowered through Unified Payment Interface (UPI).
Interoperability permits the compatibility between payment frameworks and once actualized, a client will have the capacity to transfer funds among wallets and furthermore from their wallets to bank accounts.
Where PPIs are issued as cards, the cards will be associated to the approved card networks. “PPI issuers working solely in particular fragments like meals, gifts and mass transport framework may likewise execute interoperability,” it said.
RBI additionally said card systems are permitted to on-board PPI issuers to join their system and non-bank PPI issuers are allowed to participate as members/associated members of approved card networks. PPI guarantors, RBI stated, will go about as payment system suppliers (PSP) in the UPI. The National Payments Corporation of India (NPCI) will issue handle to the PPI issuers in the wake of risk management consideration. “PPI holders will be on-boarded for UPI by their very own PPI issuers as it were. PPI issuers will just link their client wallets to the handle issued to them and PPI issuers as PSP will not on-board clients of any bank or some other PPI issuer,” it said.
The RBI said. “In the first stage, PPI issuers (both bank and non-bank substances) will make all KYC-agreeable PPIs issued as wallets interoperable among themselves through the UPI inside a half year from the date of issue of this direction,”.”In further stages, interoperability will be empowered among wallets and bank accounts through UPI. Thus, interoperability for PPIs issued as cards will likewise be empowered in due course” said the mandate issued by RBI in October 2017.
It has to be noted that UPI is a payment interface. It was launched by the National Payments Corporation of India in August 2016. It helps in exchange of funds between two bank accounts through a mobile platform.